Malta is a small European island in the Mediterranean – but it is also the centre of the world when it comes to gaming regulations.

With a resident population of a little over 518,000, the warm climate and beautiful scenery make it a popular destination for tourism. Over 1.9 million people visited the island in the first ten months of 2022, to take advantage of this perfectly placed destination for sun, sea, sand and some fun.

However, there is more to the 121 square mile landmass than tourism that is making money for the country; it has a thriving economy and has become a centre for financial services in more ways than one. It is one of the most popular places in the world for tax purposes – and more and more businesses and individuals are making use of the different legal frameworks in use to make more of their income.

Since the early 2000s, Malta has held a position as a leading jurisdiction for European remote gaming. The Malta Gaming Authority (MGA) has licenced more than 300 online and land-based casinos that are based in Malta, and more than 200 other entities that provide online casino services to residents of Malta and beyond.

Online Gaming and Licensing

Providing an online gaming platform and allowing players to get involved in games like the Slingo Demo at Megaways Casino means having a licence and being regulated.

Regulation provides protection for consumers and ensures that players get the absolute best experience from their favourite platform. Regulated companies are able to provide online gaming opportunities around the world (subject to local legislation, of course) because they are licensed to do so.

Companies in Malta are in a great position to provide this sort of service because of the legal and regulatory framework that is in place to support this sort of business.

Obtaining a Gaming Licence in Malta

The Maltese government, and by extension the MGA, has always provided a rigid and reliable framework that is designed to keep up with innovation and technology, with the express intention of ensuring that there is always clear information available from guidance documents.

Although there are many licensing authorities around the world that deal with both online and land-based casinos, from the UK Gambling Commission to authorities in Gibraltar, Macau, and other countries, Malta is a favourite – although mostly for well-established businesses. Smaller start-ups and entrepreneurs might benefit from the wealth of knowledge (and support) that the MGA offers, but the price for licencing and the regulatory hoops that they would need to jump through can be off-putting.

The usual process for obtaining a gaming licence from the MGA are as follows:

·        Firstly, there is a lot of information that needs to be submitted; including things like a business plan, details about directors and those financially involved, as well as filling out all the required forms.

·        ‘Fit and Proper Test’: This is where the MGA assesses all the people involved in managing and financing the business. This includes getting information from other financial bodies and law enforcement agencies.

·        Business Plan Analysis: Here the MGA will take an in-depth look at the business model and financial planning of the company, including forecasting information, marketing, and targets for growth.

·        Statutory/Operational Requirements: This focuses on things like the games that will be offered, the incorporation documents of the business, and the technical documents of the online offerings. There are issued and paid-up share requirements that range from 40,000 Euros right up to 250,000 Euros, depending on the type of games being offered.

·        Go Live: If all the previous stages have been completed successfully, the operator will be allowed to go live, and will have 60 days to complete roll-out. There will need to be a Systems Audit from the MGA in these 60 days for the licence to be operational.

Licences from the MGA are issued with a standard 10-year lifespan, and licensees are subject to random Compliance Reviews. The frequency of these reviews is based on certain risk factors.

If there are any failings or deviations from the licence agreement, the operator will face penalties that can include suspension of licencing or even the termination of the licence.

The whole process takes about four months, and there are different fees to consider – from the initial application costs to the ongoing monthly licence fee and the compliance contribution.

Why Malta?

There are many reasons why this small European island is host to so many different businesses, and in some cases it is all to do with financial and tax rules.

The tax rates in Malta are reliably low, and they continue to be ideal for business. There is a Maltese gaming tax, which is set at 5% for businesses who are conducting gaming operations for Maltese nationals. The international tax rate is 35%, but there is a full-imputation system in place that allows for rebates to be had (although specific tax advice should be sought about this).

Of course, the reason that many gaming companies choose to use Malta for their licensing is that the authority itself is regarded highly in the global market. Not only does it provide a balanced service that meets the needs of providers while protecting customers, it is also a process that is simple, straightforward, and in many cases faster than those of other European countries, despite the financial costs.

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